September PMI surveys published yesterday by Markit HIS showed across the board declines in all economic sectors. To declining manufacturing data, we now have to add in a slowing services sector. The composite data for the Eurozone measured 50.4, the lowest reading in 75 months and barely growing; manufacturing at 45.6 was the weakest in 81 months. Chris Williamson, chief business economist for the group added: ‘’the overall picture of an economy on the cusp of sliding into decline is underscored by further deterioration in firms’ pricing power, with average prices charged for goods and services barely rising in September’’.
Yesterday the UK’s Metro Bank tried to raise £250 million in a 4-year bond yielding 7.5 per cent. By lunch time they’d only received £175 million in firm bids and so withdrew the offering. Their share price fell again by 5 per cent, taking this year’s losses to 90 per cent of face value.
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